About Home Depot, Inc. (The)
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, windows, and window coverings. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; constructionresourcesusa.com or design-oriented surfaces, appliances, and architectural specialty products; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, heritagepoolsupplygroup.com, and gms.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
Home Depot, Inc. (The) (HD) is a Consumer Cyclical company in the Home Improvement Retail industry with a market capitalisation of $305B. The stock trades at 21.41x trailing earnings and yields 3%.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement Retail
- Market cap
- $305B
- P/E ratio
- 21.41
- Forward P/E
- 19.08
- EPS (TTM)
- $14.28
- Revenue (TTM)
- $169.2B
- Free cash flow
- $10.8B
- Profit margin
- 8.4%
- Dividend yield
- 3%
- Beta
- 0.95
- Shares outstanding
- 997.7M
Financial health: Fair5.5/10
2 strengths, 1 concern. Weakest points: debt to equity.
- Debt to equity: 4.20 (Concern, benchmark < 0.5) — Debt of 4.20x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 4.1y (Watch, benchmark < 4 years) — Net debt of $52.5B is 4.1x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 1.06 (Watch, benchmark > 1.5) — Short-term assets cover 1.06x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 104.3% (Strong, benchmark > 15%) — Earns 104.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 32.8% (Watch, benchmark > 40%) — Keeps 32.8% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 8.4% (Watch, benchmark > 10%) — Turns 8.4% of revenue into profit, short of the > 10% mark.
- Free cash flow: $12.6B (Strong, benchmark positive) — Generated $12.6B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 5.7% (Watch, benchmark > 10%) — Revenue changed 5.7% year on year, short of the > 10% mark.
- Earnings growth: 4.6% (Watch, benchmark > 10%) — Earnings changed 4.6% year on year, short of the > 10% mark.
- PEG ratio: 1.73 (Watch, benchmark < 1) — At 1.73, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 64.8% (Watch, benchmark < 60%) — Pays out 64.8% of earnings as dividends — above the level usually considered sustainable.